Dogecoin investors sued Elon Musk and two of his companies, Tesla and SpaceX, and demanded $258 billion in damages.
lawsuit class action was filed by Keith Johnson and other Dogecoin investors who suffered losses, in New York District Court, Thursday (16/6/2022).
It in the lawsuit document , that the defendants (Elon Musk, Tesla and SpaceX), are accused of being involved in investing in ponzi scheme Dogecoin (DOGE)
Dogecoin Investors Sue Elon Musk
“Since Elon Musk and his company began buying, developing, promoting, supporting and operating Dogecoin in 2019, the plaintiffs have suffered monetary losses of approximately US$86 billion…and with other losses, the equivalent of US$172 billion,” said the plaintiff represented by attorney Evan Spencer.
The 26-page lawsuit document detailed their argument that Dogecoin was believed to be a gambling and investment ponzi scheme. Another thing is that Dogecoin is an illegal security, because it is not registered with the Securities and Exchange Commission (SEC) in the US .
The plaintiffs also believe that Elon Musk used his power and influence as the world's richest man to manipulate the public via Twitter by getting people to buy Dogecoin.
That Musk and Dogecoin
In January 2022, Elon Musk did announce that his electric vehicle company Tesla, would accept Dogecoin as payment for their products. Later in May, it announced that Dogecoin payments would also be received by the company for SpaceX's space exploration.
Then in April 2022, the Dogecoin Foundation, where Elon Musk serves as one of its advisors (represented by Jared Birchall ), plans to use Elon Musk's Starlink satellite network to facilitate offline DOGE transactions. The team from the foundation admitted that the concept already exists, but it will take a long time.
Elon Musk's support for Doge is very, very bare. One recent example is that it supports widespread use software Dogecoin (DOGE) DogecoinCore.exe , the latest version. This support replied to a tweet from one of the founders of the crypto, namely Shibetoshi Nakamoto aka Billy Markus.
In May 2021, one of Doge's core developers turned down an offer of money from Musk to support the development of the cryptocurrency. However, the developer politely refused.